Litecoin
Charlie Lee, the founder of the #cryptocurrency Litecoin,
announced yesterday on #reddit that he had divested most of his litecoins. In case it isn't obvious,
divested is the opposite of invested.
According to him, it is a "conflict of interest to keep buying and selling #Litecoin while still actively #tweeting about it" since he has "so much influence."
According to Lee, he sold and donated all of his litecoins, making this the first time in six years that he hasn't owned a single litecoin.
He did state that he will continue to work on litecoin.
It’s uncommon for a founder of a major cryptocurrency to publicly divest themselves from their holdings.
Satoshi, the founder of Bitcoin, remains obscured from the public eye, while Vitalik Buterin, founder of Ethereum, still owns a lot of ether and stays active on social media.
It was not long before many on Reddit expressed doubt towards Lee’s intentions for divesting. One user wrote that he had lost faith in Litecoin after Lee’s divestment, saying, “Typically in finance, a founder selling out his stake is a very BAD indicator for his perception of future performance.”
Some even hypothesized that Lee pulled out of Litecoin in order to invest more in Bitcoin Cash, and accused him of insider trading. Lee responded to such accusations with a tweet and an update to his Reddit statement, strongly denying that he had any involvement with the Coinbase Bitcoin Cash insider trading allegations.
How do you feel about Lee's decision?